It’s July 2007 and I am all about online banking. My existing CD expires, but I discover has online CDs and interest rates are at about 4.5% – which is just amazing. Bonus: No bullshit dealing with a branch.
So I drop my CD money in there and enjoy a year of blissful interest. Fast forward to July, 5 2008 – maturity day. I log on, fully expecting to be able to transfer funds out of my CD into my savings while I decide whether to go in for eight months or see if rates run up over the next few weeks.
Then I find this:
Your Online CD will renew automatically–you don’t have to do anything unless you want to change the term or amount, or close out the CD. If you do wish to make changes to your Online CD, give us a call at (800) 788-7000 during the CD’s grace period […]
So the thing that gives me great rates because it forgoes all the labor-intensive branch interference requires I go through their phone tree and deal with someone in the Phillippines to move my money around.
So I call. The first person I get tries to pitch me the idea of keeping my CD open – I explain my reasons. But, she says, there are CDs that bump their interest rate. Yeah, but those are the ones that give me 1.25% APY for 18 months, which is just lame. Your humble author can be a moron at times, but he generally does his homework.
So she transfers me to someone else.
“Hi, I’ve got an online CD that just matured and I’d like to move the funds to my savings.”
Transfer.
“Hi, I’ve got an online CD that just matured and I’d like to move the funds to my savings.”
Transfer.
“Hi, I’ve got an online CD that just matured and I’d like to move the funds to my savings.”
Transfer. At this point, I don’t care how shady they might be, a PayPal money market account or investing with the local Russia mobsters (the brothers Portnov are pretty cool guys) is looking pretty damn tempting.
Finally, someone handles my business, but I wonder how much labor and infrastructure was required for this episode that could have been handled at a branch or even – God forbid – online. I assume this system is designed to make it hard for people who hop from bank to bank after sweet deals on CDs and savings accounts, but the dedicated ones will put up with the crap anyway.
Seriously, WaMu. Seriously?






